Exam 8: Negotiation of the Collective Agreement

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Which of the following statements expresses an interest, as opposed to a demand:

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C

An employer is preparing to negotiate the renewal of a collective agreement. The employer anticipates that the union will be seeking a 3 percent wage increase and anticipates that the union will begin negotiations by asking for a 5 percent increase. The employer is willing to provide a 4 percent wage increase although it would prefer to keep the wage increase to 2.5 percent. The employer is planning on proposing a 2 percent wage increase at the start of negotiations. Which of the following is correct:

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B

When it is the first time a company and a union is bargaining a contract, either party can request that the remaining issues be resolved through arbitration.

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True

Interest-based bargaining may be combined with traditional positional bargaining.

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After contract negotiations have been going on for an extended time it appears that a union negotiator will likely have to make a concession to reach an agreement. The concession will significantly affect half of the bargaining unit. The union negotiator is considering how to avoid a backlash from the bargaining unit members affected. This situation illustrates which of the following:

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The size and pattern of concessions made in distributive bargaining should be carefully planned and managed.

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In the most centralized bargaining structure contract negotiations occur between one union and one employer for one location.

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Describe the nature and significance of first contract arbitration.

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To avoid haggling and make the negotiation process more efficient the employer should start contract talks with its best monetary offer.

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Interest-based bargaining is universally viewed as a new approach to contract negotiations.

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At the second negotiation session between union and employer representatives the union negotiators have talked at length about how important it is that a new benefit for a prepaid legal plan is included in the collective agreement. This situation illustrates:

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Explain the meaning and significance of bargaining structure.

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Describe the factors affecting the union-management relationship.

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A union represents employees at several different restaurants in a tourist area. The union is bargaining with one of the employers and is threatening to strike if the employer does not agree to the union's demands. This situation illustrates:

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If a union and an employer adopt interest-based bargaining they must engage in extensive preparation and training.

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Explain the difference between centralized and decentralized bargaining and provide an illustration for each one.

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The statement "We propose to reduce costs by reducing the amount of sick time taken by employees." is setting out an interest.

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A certification by a Labour Relations Board grants a union the right to bargain for employees situated at one or more locations of an employer.

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A union's resistance point is the least favourable offer that it will accept.

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Which of the following is the least likely to be a factor affecting the bargaining power of the union:

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